Comments on the Supplemental Appropriations and Rescission Act of 1981

A congressional request was made for further comments on the scope of language in the Supplemental Appropriations and Rescission Act that limits the type of commercial insurance for which the Navy may reimburse shipbuilders. GAO concluded that the act does not prohibit reimbursement for the most common type of commercial shipbuilders insurance covering casuality losses caused by defective performance. GAO proposed draft legislative language that would prohibit reimbursement for commercial insurance covering losses from shipbuilder's defective performance.